LONDON, March 10(Updates with official prices)

LONDON, March 10 (Reuters) - Copper prices rose on Wednesday as traders hoped a pullback from 10-year highs had run its course and the metal's spectacular rally would resume.

Strong demand from China and expectations of years-long supply shortages encouraged a wave of speculative buying that drove prices to $9,617 on Feb. 25, their highest since 2011.


The rally was punctured by fears that a speculative bubble was forming and a spasm of caution on wider markets caused by a spike in U.S. bond yields, but prices have begun to recover from a low of $8,570 last week.

In official trading, benchmark copper on the London Metal Exchange (LME) was up 1.6% at $8,917 a tonne.

"The rally in many ways is justified," said WisdomTree analyst Nitesh Shah, predicting prices of $10,000 and above.

"There isn't a form of renewable energy that doesn't require more copper than traditional fossil fuels."

MARKETS: Global stock markets rose, lifted by a stunning rebound in U.S. tech shares, while the dollar strengthened.

FACTORIES: Strong factory data in China and France pointed to solid demand for metals.


POSITIONING: Speculators have reduced bets on higher metals prices.

The net long position in LME copper fell to 43% of active contracts on Monday from 62% on Feb. 25, broker Marex Spectron said, while a Chinese brokerage cut a long position worth more than $1 billion by almost 25%.

"Metals can resume their rallies having seen such a big clearout," Marex's Alastair Munro said in a note.

SHFE: Copper prices on the Shanghai Futures Exchange fell as traders fretted about a possible tightening of Chinese monetary policy.

CHILE: Workers at Antofagasta's Los Pelambres copper mine in Chile rejected a contract offer, increasing the likelihood of a strike.

PERU: Copper output in Peru could hit a record 2.5 million tonnes in 2021, a government minister said.


TIN: LME tin rose 1.8% to $24,885 a tonne as the premium for cash metal over the three-month contract rose back towards last month's unprecedented highs, suggesting an acute shortage of near-term material. CMSN0-3

OTHER METALS: Benchmark aluminium was unchanged at $2,168.50, zinc fell 0.2% to $2,773, nickel was flat at $16,080 and lead was 1% down at $1,946. (Reporting by Peter Hobson Additional reporting by Mai Nguyen Editing by Jan Harvey and David Goodman)